South African insurtech startup Naked has raised an impressive US$38 million in its Series B2 funding round, positioning the company to accelerate growth through enhanced investments in automation, artificial intelligence (AI), product and market expansion, and advertising initiatives aimed at scaling its customer base.
Founded in 2018 by actuaries Alex Thomson, Sumarie Greybe, and Ernest North, Naked has revolutionized the insurance industry by creating an end-to-end digital platform that empowers customers to manage their entire insurance journey seamlessly via a mobile app. This platform offers instant and comprehensive coverage for cars, homes, contents, and standalone items, harnessing the power of AI and automation to deliver an insurance experience that is faster, more affordable, and user-centric.
One of Naked’s standout features is its ability to provide a final insurance quote in under 90 seconds, along with giving consumers the flexibility to switch, pause, or adjust their coverage—all without the need for contact center assistance. This innovative approach has significantly reduced costs and improved customer convenience, establishing Naked as a trailblazer in the insurtech space.
This latest funding round saw participation from global impact investor BlueOrchard, alongside increased backing from existing stakeholders, including Hollard, Yellowwoods, International Finance Corporation (IFC), and Germany’s development finance institution, DEG. The Series B2 round follows Naked’s earlier funding milestones: a US$11 million Series A led by Naspers in 2021 and a US$17 million Series B in February 2023, bringing its total funding to date to over US$66 million.
The newly secured funds will enable Naked to deepen its investment in cutting-edge automation and AI technologies, further refine its product offerings, and expand into new markets. The company also plans to ramp up its advertising efforts to attract a broader audience while ensuring compliance with regulatory capital requirements to support its rapid growth trajectory.
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“This investment represents an exciting chapter for Naked as we continue to redefine the insurance experience,” said Alex Thomson, co-founder of Naked. “The strong support from our existing shareholders and the addition of BlueOrchard as a new investor underscore the success of our business model and the remarkable progress we’ve made in making insurance more accessible and convenient. With a loyal customer base and an innovative technology platform, we are well-positioned for sustained growth in the years ahead. We’re deeply grateful to South African consumers for embracing this new wave of insurance and to our investors for their trust in our vision.”
BlueOrchard, a global leader in impact investing, emphasized that its participation aligns with its mission to leverage digital innovation to enhance financial inclusion.
“Naked’s focus on using technology to expand access to insurance aligns perfectly with our InsuResilience Investment Fund strategy,” said Richard Hardy, private equity investment director for Africa at BlueOrchard. “This funding will enable Naked to broaden its reach, develop innovative products, and strengthen the financial resilience of its customers.”
Naked’s transformative approach has positioned it as a leader in the South African insurtech landscape. Naked leverages state-of-the-art technology and customer-focused solutions to redefine insurance delivery while actively advancing financial inclusion and resilience across the region.
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